The Reserve Bank of India has cancelled the licence of Jalagoan-based Chopda Urban Co-operative Bank as it had ceased to be solvent and depositors were being inconvenienced by continued uncertainty. The banking regulator delivered the order cancelling the bank’s licence after close of business on May 24, a release said on Tuesday.

The Registrar of Co-operative Societies, Maharashtra, has also been requested to issue an order for winding up the bank and appoint a liquidator for it, the release said.

On liquidation, every bank customer is entitled to repayment of his/her deposits up to a monetary ceiling of Rs 1 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC) under usual terms and conditions.

Consequent to the RBI order, the Chpda Urban Co-operative Bank Ltd is prohibited from carrying on ‘banking business’ as defined in Section 5(b) of the Banking Regulation Act, 1949 (as applicable to co-operative societies), including acceptance and repayment of deposits, it added.